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Stock price changes show Korea's growing dependence on IT sector

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Kind: captions
Language: en

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Korea's main stock index, the benchmark KOSPI,
shot up to its highest level in three years
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last week and extended those gains on Monday.
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This has raised hopes the KOSPI may be able
to break out of its recent pattern of trading
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in a limited range.
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Also, if we look at the shifting stock prices
we can see the nation's economy is moving
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away from its traditional manufacturing powerhouses
and becoming increasingly reliant on electronics
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and IT companies.
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Yoo Li-an has more.
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The benchmark KOSPI broke the 2,080 mark last
week for the first time in three years.
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But that's not good news for everybody,..
as data analyzed by corporate tracker CEO
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score,... show that former heavyweights in
the traditionally strong petrochemical, steel
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and shipbuilding sectors are faring poorly.
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They used to be among the main building blocks
of the Korean economy .. but their market
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cap has slumped in the past three years.
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Market cap for IT companies, on the other
hand, jumped by the biggest margins.
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Market superstar...
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Samsung Electronics which take up about a
third of the overall market capitalization
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rose by over sixty-percent during the period,
and world's second biggest memory chipmaker
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SK Hynix and Korea's leading online portal
operator Naver Corp both saw their market
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cap jump by over one hundred percent.
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But the market value of POSCO, Korea's largest
steelmaker, shrank by nearly 27-percent during
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the period, while that for the world's biggest
shipbuilder, Hyundai Heavy Industries, dwindled
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by over sixty percent.
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This has naturally led to a shift in the proportion
of market cap by each industry.
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While the IT, automobile, petrochemicals and
shipbuilding and steel each that took up a
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similar share of the KOSPI market cap back
in 2011,... the market cap is now mainly led
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by IT sector which accounts for more than
a quarter of the overall market .
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Companies in the petrochemical business saw
market cap shrink by over half,.. to six-percent.
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Yoo Li-an, Arirang News.

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